<p>The goal of this study is to explain the linkages between circular economy (CE) principles and financial systems by drawing on current scholarly results to shed light on the dynamics and implications of this relationship. We followed a clear and organized review process and used the scientific procedures and rationales for systematic literature reviews (SPAR‐4‐SLR) and the Theory-Context-Characteristics-Methodology (TCCM) framework to bring together the main themes, theories, and research approaches in this area. We used the Scopus database; by limiting it to ABDC-rated A and A* journal articles, we resulted in 49 relevant papers published between 2014 and 2024. Although the number of studies has grown, the work is still scattered across topics and regions. The result shows that most research studies are centered on the European context and specific segments of industries, thus neglecting other regions, including Africa and Latin America, significantly. The majority of the methodologies are quantitative (mostly regression analysis and panel data analysis), but comparatively few qualitative and mixed methods are found. The most common theoretical prisms include institutional and resource-based, and behavioral and digital finance frameworks have rather limited coverage. The key constructs are adoption of CE, financial performance, and environmental outcome, whereas the moderate variables, moderators, and contextual control are relatively underused, and hence their causal inference is constrained. The research highlights the need to have wider geographic coverage, better industry focus, integration of theories across sectors, and mixed-method research designs. Enhancing the financial basis of CE initiatives is vital in ensuring that the concept of circularity is transformed into effective and commercially viable approaches.</p>